ARLINGTON, Va. , Jan. 5, 2024 /PRNewswire/ — Leading into CES® 2024, the Consumer Technology Association® predicts that retail revenue for the U.S. consumer technology industry will grow 2.8% in 2024 to $512 billion ( an increase of $14 billion from 2023 ). This signals an uptick in consumer spending on technology products and services, according to the CTA’s One-Year Industry Forecast.
“Despite inflation in most sectors of the US economy, it is notable that consumer technology products such as televisions, smartphones and gaming equipment are being purchased at lower prices by consumers,” said Richard Kowalski, Sr. Director of Business Intelligence at CTA. “Technology by its very nature is deflationary as innovation drives industries to find newer, more efficient ways to compete. Looking ahead to 2024, I expect advances in artificial intelligence to accelerate growth for consumer and enterprise technology companies as they become more efficient and find more ways to meet consumer needs.”
Trends to watch in 2024:
The Year of the Megabundle: Content providers will increase promotion of “service bundles” to attract more consumer interest. Megabundles have the potential to offer consumers discounted prices on their favorite services while simplifying their payment process.
Streaming Up: Consumers will spend $14 billion (up 6% from 2023) on audio streaming services and $48 billion (up 4%) on video streaming in 2024.
Gaming Hardware Boom: Product refreshes in tablets, augmented and virtual reality headsets and gaming (Major console brand refresh in 2024/2025) will boost gaming revenue in 2024. Gaming will also be boosted by 12% growth in subscription services (increasing to $3.5 billion in 2024). Genetic AI is expected to improve the gaming experience while helping developers bring games to market faster.
Devices and services go hand in hand: Services continue to be an essential part of the product market, as evidenced by growth in the services sector. The CTA estimates that 25% of all consumer technology spending was on various software and subscription services in 2019. In just 5 years to 2024, the CTA predicts that the same services will be just under a third of all consumer spending .
Believe the AI Hype: More than 230 million smartphones and computers shipped in the US this year will harness the power of genetic artificial intelligence through mobile apps, browsers and on-device software. Artificial intelligence is being developed in mobility safety systems, fitness tracking applications in smartwatches and picture quality improvements in televisions.
“I’m excited by the breadth of innovation I’m seeing from companies large and small participating at CES 2024,” said Gary Shapiro, president and CEO, CTA. “By embracing pro-innovation regulatory policies, encouraging investment, reforming immigration to embrace global talent and strengthening trade partnerships that boost innovation, we can drive innovation to the benefit of all people.
Methodology
Twice each year since 1967, the CTA has updated its forecast for more than 125 consumer technology products and services. This forecast serves as a benchmark for the consumer technology industry, capturing the size and growth of the underlying categories and industry. Used by manufacturers and retailers to create product development plans. financial analysts to size market opportunities; industry and general media to provide context to their coverage; government staff to understand industry scope to guide policy decisions; and CTA itself to highlight of the industry’s successes and challenges. Subscribe to CTA Research Insights.
About the Consumer Technology Association:
As North America’s largest technology trade association, CTA® is the technology sector. Our members are the world’s leading innovators – from startups to global brands – helping to support more than 18 million American jobs. CTA owns and produces CES® – the most powerful technology event in the world. Find us at CTA.tech. Follow us @CTAtech.
